"Carbon bubble poses serious threat to UK economy, MPs warn."

Guardian: “Stock markets are inflating a “carbon bubble” by overvaluing companies that produce fossil fuels and greenhouse gases, and this poses a serious threat to the economy, an influential committee of UK MPs has warned.”“The idea of a carbon bubble – meaning that the true costs of carbon dioxide in intensifying climate change are not taken into account in a company’s stock market valuation – has been gaining currency in recent years, but this is the first time that MPs have addressed the question head-on.
Much of the world’s fossil fuel resource will have to be left unburned if the world is to avoid dangerous levels of global warming, the environmental audit committee warned.
To avoid the carbon bubble, the report says the Bank of England’s financial policy experts should take advice from the Committee on Climate Change to monitor the risks to financial stability – a controversial recommendation that is likely to ruffle feathers in the Treasury. Equally as contentious is the committee’s call for the government to support binding national renewable energy targets for European Union member states, a move that the coalition has strongly resisted, preferring instead to rely solely on an emissions reduction target.”